Vitalik Buterin takes a stand on the growing influence of Elon Musk’s tweet antics on the crypto market and at the same time rejects his view of the scaling of Dogecoin.
In many places, the great influence that Elon Musk’s Twitter activities had on the Bitcoin rate causes a lack of understanding. In this regard, Ethereum mastermind Vitalik Buterin has now spoken out. Across from CNN he said the crypto market would no longer be dependent on Tesla CEO Elon Musk’s tweets.
Not only Bitcoin, but also Ether was marked by heavy price losses. On Wednesday morning, the second largest cryptocurrency by market capitalization plunged below $ 1,900, losing around 40 percent from the previous day. While Ether bounced back, it is still far from the record high of $ 4.384 on May 11th.
Buterin explained that although the crypto market currently seems to be at the mercy of Musk’s tweet antics, “over time it will build an immune system.” The problem lies less in an in-depth analysis of the coins than in gullibility the investors who simply gave too much faith or interpreted too much into the tweets of the Tesla ruler.
Buterin recalls that on February 4th of this year, a Dogecoin tweet from Musk resulted in a 40 percent price increase within half an hour. However, Buterin doesn’t think Musk is deliberately trying to mislead investors.
I don’t think Elon has any malicious intent in any way.
Buterin criticizes Musk’s statement on Dogecoin
Elsewhere, however, Buterin criticizes Musk’s claims more clearly. The Ethereum co-founder has published an extensive analysis of the limits of the scalability of the blockchain. The article posted on May 23 in Buterins personal blog published, emphasizes the conflict between decentralization and scalability in the architecture of blockchain networks. The article is in response to Elon Musk’s tweet from May 15th. In it, he claims that Dogecoin “ideally” increases the block time and size by 10 times and lowers the fees by 100 times.
Vitalik Buterin questions this thesis. He emphasizes the challenge of wanting to achieve a strong increase in scalability and throughput without endangering centralization as a fundamental property of a blockchain. This problem describes the blockchain trilemma: the incompatibility of decentralization, security and scaling. It is these challenges that have been incorporated into the roadmap for the launch of Ethereum 2.0. Sharding should enable a scalability in Ethereum 2.0, which so far only centralized chains offer.